Five-year Business Plan 2015 to 2020
Consultation document Southern Water 2
About us
We supply quality drinking water to almost 2.4 We take nearly 70 per cent of the water from million people and treat and recycle wastewater underground sources, called aquifers, 23 per cent from nearly 4.5 million people across Kent, Sussex, from rivers and seven per cent from storage Hampshire and the Isle of Wight. reservoirs.
Each day we supply nearly 530 million litres of Each day we also treat and recycle 730 million drinking water from our 94 water supply works litres of wastewater at 368 treatment works after it along 13,700 kilometres of water mains to is pumped through a sewer network of more than customers’ taps. 39,600 kilometres.
The Southern Water region
Visit www.southernwater.co.uk/haveyoursay to find out more. Five-year Business Plan 2015 to 2020 3
Contents
Introduction Section
From the Removing wastewater Southern Water Board page 5 5 e ectively page 23
Our Section promises
Summary of Looking after our commitments page 6 6 the environment page 29
Section Section
Better information 1 Our vision page 8 7 and advice page 37
Section Section
2 Listening to you page 10 8 A ordable bills page 43
Section Section
Responsive 3 customer service page 13 9 Your bill page 48
Section Section
A constant supply of high 4 quality drinking water page 17 10 A balanced plan page 50 Southern Water 4
Join in and have your say…
We want to hear your views on our draft five-year Business Plan for 2015 to 2020.
Your feedback will help us make sure the services we provide in the future meet your needs and expectations. By telling us what you think, you could also win up to £250 of shopping vouchers.
We will enter the names of everyone who comments into a prize draw. For more details and terms and conditions of the draw go to: www.southernwater.co.uk/haveyoursay How you can give your feedback Our website Visit www.southernwater.co.uk/haveyoursay and fill in our online survey or feedback form. We will also donate £1 to the international charity WaterAid for every piece of feedback we receive. Email Send your views to We’d like to hear your comments by [email protected] Sunday 22 September, 2013. Twitter Tweet us via @SouthernWater Post You can get a copy of our plan and feedback form from, or send us your feedback to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX Come and see us We are holding roadshows at venues across our region. You can get more details from our website, or by writing to Joel Hufford, Public Relations Manager, at the address above. Phone You can call us on 01903 272349. Lines are open from 9am to 5pm, Monday to Friday. Five-year Business Plan 2015 to 2020 5
Introduction Members of the Southern Water Board
Welcome to our draft five-year Business Never before have we talked in detail to so many Plan for 2015 to 2020. people to make sure we really understand what you want and expect from us. This plan sets out our proposals for water and All successful companies listen to what their customers wastewater services in the future. These proposals want. It’s especially important for us to do this as most describe how we will make the improvements you of you don’t have a choice about which water company expect. To pay for this, your bills will go up by no you use. more than the rate of inflation – in line with the price of most everyday goods and services – but no further The research we’ve carried out means this plan This compares to a rise of almost seven per cent is firmly focused on meeting your expectations for above inflation in our average bill from 2010 to 2015. improved services, while keeping your bills affordable. The promises set out in this plan won’t be easy to This plan is focused on you, our customers, and we keep, but we’re ready for the challenge ahead. want to hear what you think of it. This will allow us to use your feedback to finalise our plan. It will then be Delivering improvements submitted to our regulator, Ofwat, at the beginning of As a company, we have a lot to be proud of. We’ve December 2013. currently got the lowest level of leakage of all the main Becoming the best water and wastewater companies in England and Wales, and our record on health and safety is the best Our vision is to be recognised as the UK’s leading in our history. water company. To achieve this goal we must follow the lead of the best, most successful companies, which At the same time, we realise there are areas where consistently put their customers at the heart of their we need to do better. These include improving our business. Achieving our vision means we will be doing customer service, successfully tackling flooding from our the following: sewer network and raising the quality of coastal waters. – Providing services which meet customers’ expectations. As we’ve developed this plan, we have been helped We have set out clear promises on what we’ll do and guided by the Southern Water Customer Challenge by 2020. Group (CCG) – an independent panel made up of representatives from local business, community and – Performing as well as the best water companies in environmental groups, as well as our regulators. They the UK across a range of measures. These include have challenged us on how we’ve gathered your views the quality of our customer service, our environmental and used your feedback to shape our proposals. We record and our financial performance. would like to thank the CCG members for their advice. – Leading the water industry on important issues such We would now like to hear what you think of this plan. as how to manage water resources, an area we Thank you for taking the time to read it and respond. already have a groundbreaking new approach to. We look forward to receiving your feedback. A plan built around you This plan has been shaped by the results of our biggest ever consultation. Over the past 16 months we’ve gathered, and acted upon, feedback from thousands of customers and local community representatives. Colin Hood, Chairman, Southern Water
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 6
Our promises
We’ve talked to you in detail about your priorities.
You told us there are six priorities you want us to deliver. These are set out below and on the page opposite, along with our promises about what we will achieve for you.
You can find out more about how we will meet our promises in Sections 3-8 of this document. We will link a number of our promises (those which include a symbol below) to a financial penalty. These penalties will apply if we miss the target by more than a specified amount. For some of these promises, we are also proposing we could receive a financial benefit if we beat the required target by more than a specified amount (more details in Section 10). We will talk to you about how we set and apply these penalties and benefits as part of our consultation on this plan. Before we received any benefits, we would need to show we have at least maintained our overall levels of service.
Responsive customer service see pages 13–16
– Set out the standards of service you can expect from us in – Make sure more of you feel our service meets your a Customer Charter. We will pay compensation directly to individual needs and those of your community. We will set those of you we let down. a target to increase the number of you who feel this way, – Resolve more of your queries the first-time you contact us. then measure and report regularly on our performance. Our target is 90 per cent first time resolution by 2020. – Be amongst the best on our regulator’s league table for customer satisfaction by 2020. This will help show you how we are improving customer service.
A constant supply of high quality drinking water see pages 17–22
– No restrictions on your water use, such as hosepipe bans. – Provide you with high quality drinking water – we will That’s unless there has been exceptional weather – at least maintain our current level of compliance with required two dry winters in a row. quality standards (99.93 per cent), while continuing to aim – Make better use of your water supply by reducing wastage. for 100 per cent compliance. Our target is leakage reduction of 1.9 million litres a day – Make sure no more of you suffer from persistent low water by 2020. pressure. 257 households are currently affected. – OPTIONMake 1 sureOPTION you 2are OPTIONwithout 3 waterOPTION 4for the minimum possible time, – Help you to reduce the effects of hard water in homes and for example by mending burst mains quickly and efficiently. This businesses by providing better information. We will set a will£ mean£ £ there£ £ £ is £no£ £ increase£ £ £ £ in£ £ the average time you are target to increase your understanding, then measure and without water. Our target is nine minutes per customer per year. report regularly on our performance.
Removing wastewater e ectively see pages 23–27
– Remove your wastewater reliably – making sure there is no – Make sure there is no increase in the number of increase in the number of blockages in the sewer network. incidents of sewer flooding affecting outside areas in your This is a good indication that our system is performing well. neighbourhoods. – Achieve a 25 per cent reduction in the number of you who – Reduce the number of you affected by smells from our waste- experience sewer flooding inside your homes and businesses water treatment works and pumping stations. Our target is a by 2020. five per cent reduction in complaints about smells by 2020.
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 7
We’ve developed a plan for 2015 to 2020 which will meet your expectations and deliver the improvements you want. The plan will cost £3 billion to implement. To pay for this, your bills will go up by no more than the rate of inflation – in line with the price of most everyday goods and services – but no further. You can find out more about what might happen to your bill in the years ahead in Section 9 of this document.
Looking after the environment see pages 29–35
– Protect your local rivers, streams, beaches and coastal – Increase the number of your beaches with excellent bathing waters from the most serious kinds of pollution. Our target water quality – up 15 per cent from 41 to 48 by 2020. is no ‘serious pollution incidents’ caused by our operations – Minimise the effect our energy consumption has on the by 2020. environment – we will maintain the proportion of renewable – Protect your local rivers, streams, beaches and coastal energy we use despite our energy needs increasing. waters – we’ll maintain, as a minimum, 98.6 per cent – Protect your local water environment – we will reduce the compliance by our wastewater treatment works, while amount of water we take from the environment by one continuing to aim for 100 per cent compliance with per cent, despite predicted population growth of three required quality standards. per cent by 2020.
Better information and advice see pages 37–41
– Provide you with better advice on how to save water and – Provide you with clearer bills so you don’t need to contact help you save money on your water and energy bills. Our us because you can’t understand them. Our target is a target is a reduction in average water use from its current 50 per cent reduction in bill queries by 2020. 149 litres per person per day to 135 litres by 2020. – Provide you with better information about what we do, why – Provide you with better advice to help prevent blocked we do it and what it costs. We will set a target to increase drains and sewers in your area. We will target an increase your understanding of how we use the money we receive in the number of you who know what you can do to prevent through your bills, then measure and report regularly on blockages. our performance.
Affordable bills see pages 43–47
– Keep your bills as low as possible – we will be making – Support more of you who are in genuine financial hardship. efficiency savings of £180 million between 2015 and We will set a target to increase the proportion of you who 2020. take up the support we offer, then measure and report OPTION 1 OPTION 2 OPTION 3 OPTION 4 – Provide you with better advice on how to save water and regularly on our performance. help you save money on your water and energy bills. Our £ £ £ £ £ £ £ £ £ £ target£ £ £ is£ £a reduction in average water use from its current 149 litres per person per day to 135 litres by 2020.* * This promise also appears in Better information and advice.
Come and tell us what you think of this plan. Visit www.southernwater.co.uk/haveyoursay for details of local events we’ll be at. Southern Water 8
Section
Our vision 1
Leading the way Achieving our goal We want to be recognised as the UK’s leading water We need to keep our promises relating to the six priorities company. for the future, which we’ve identified from our in-depth customer research. To do this we will need to meet our customers’ expectations. We’ll also need to be consistently the best Every year we’ll measure how well we’re doing by performer in the UK water industry. tracking our performance against the promises we have made in this plan. We’ll give you a clear update on Until now, the water industry has focused mainly on how we’re performing so you know we are keeping our making sure its assets, such as water mains, sewers and promises to you. treatment works, are reliable and fit for purpose. Meeting targets set by regulators has also been important. This We’ll also tell you how we are performing compared with has helped us to improve our services and our effect on the other water companies in the UK. We’ll innovate and the environment. take the lead in our industry on a wide range of issues connected to your priorities. However, we have not paid enough attention to what matters most to you. We need a new approach if we’re We’re already leading the way on a number of topics. to make our vision a reality. This includes the new approach we have taken to understand, and prepare for, the effect more extreme weather patterns will have on our water resources over the next 25 years. This will help make sure our water supplies are more resilient. We have also worked with
Recognised as the UK’s leading water company
Responsive A constant supply Removing Looking after the Better Affordable bills customer service of high quality wastewater environment information drinking water effectively and advice
OPTION 1 OPTION 2 OPTION 3 OPTION 4
£ £ £ £ £ £ £ £ £ £ £ £ £ £ £ 1 Having great people 2 Looking after our assets 3 Working in partnership 4 Having a firm financial OPTION 1 OPTION 2 OPTION 3 OPTION 4 footing
£ £ £ £ £ £ £ £ £ £ £ £ £ £ £
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 9
our customers to shape every aspect of our metering Having a firm financial footing to deliver programme, from how meters are installed to the support 4 what you need and want we provide around metered bills. This approach has drawn widespread praise. We’ll make sure we can continue to attract low cost, long-term financing, so we can invest efficiently to Building for success provide the standard of service you expect. To help us achieve our goal of being recognised as the Working to improve leading water company in the UK, we’ve identified We’re fully aware of the scale of change we need to four essential building blocks. These are based on the make, but we’re determined to succeed. We realise we experience of highly successful companies across a need to make a number of major improvements. range of sectors. They will form the foundation of the work we do to meet your expectations for the future (see You’ve told us you expect us to provide better customer diagram on page 8). service, which is more responsive to you and tailored to your needs. You also expect us to work harder on 1 Having great people to provide great service reducing flooding from our sewer network. In order to protect and improve the environment, particularly raising By attracting and training great people to work for the quality of our region’s coastal waters, you want us to us, we’ll make sure our staff and our company’s work more effectively with others, such as local councils culture are always focused on providing you with and landowners. excellent service. We won’t wait for 2015 to start work on these 2 Looking after our network of pipes and improvements. Our efforts are already underway in many areas and we’re making good progress. treatment works (our assets) to give you a reliable and high quality service – We’re upgrading our billing system to offer you new and improved services, such as online billing. We’ve By looking after our assets – water mains, sewers and also redesigned our bills to make them clearer and treatment works – we’ll ensure we provide you with easier to understand, and increased our range of the highly reliable services you expect. We’ll also information and advice, such as tips on saving water. protect services for future generations, and do this in the most affordable way. We’ll make the best use of – We’re working with others to tackle flooding problems. the money we invest and make sure our business is For example, in Middleton-on-Sea, West Sussex, we’ve committed to innovating – finding new and improved joined forces with residents, the local council and the ways of working. Environment Agency (see page 26 for details). – We’re tackling the problem of blocked drains and 3 Working with others to deliver improved sewers. On the Isle of Sheppey in Kent, for instance, services to you we’re working with residents and a charity to recycle cooking fat which may otherwise be poured down the We’ll work with others to improve our service across plughole, causing blockages. the board. Developing more partnerships with a wide range of organisations, from local councils to This is just the start. This plan sets out how we’ll community groups, will enable us to provide better continue to improve and make our vision a reality over results in a more cost-effective way. the next five years. This includes strengthening our constructive working relationships with our regulators Ofwat, the Drinking Water Inspectorate, the Environment Agency and Natural England.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 10
Section
Listening to you 2
This plan is different from the ones we’ve produced before. It has one clear aim – providing the services What you told us you’ve told us you want. To develop our plan we’ve listened to your views and focused on how we can ‘Price – that’s really the beginning and end of it.’ meet your needs. ‘You’ve got to keep maintaining the pipes, the sewers. What matters to you You’ve got to do that all the time – keep your eyes on it.’ Since April 2012 we’ve been talking to you and your ‘ You need to have a good standing in the eyes of community representatives to identify the issues which your customers.’ are most important to you in the next 25 years. ‘ People want to turn the tap on and water’s there. More than 7,500 customers from across our region took They want to pull out the plug and it goes away. part in these detailed discussions. This is the first time That’s as much involvement as they want.’ we’ve talked to so many people in such detail, and over ‘ Even a big company needs to behave like a local one.’ so many months, to understand your needs. ‘ Looking after the environment – that’s as important to We carried out research in multiple waves, with the me as anything else.’ findings from each wave helping to shape our approach to the next. Throughout our discussions, we’ve checked ‘ Southern Water has a duty to educate, inform and back with you at regular intervals to make sure we’ve provide leadership to encourage people to save water.’ correctly understood what you’ve told us. This has helped us make sure the results of our research are accurate.
Finding out how much you’re prepared to pay for the service you want From July 2012 to January 2013
Wave 2
Understanding Understanding how what you expect from important each priority Getting your views us over the coming is to you, including how for our 25–year 25 years quickly you want service Water Resources improvements made Management Plan Wave October Wave 1 2012 4
April July November & 2012 2012 Wave December 2012 3 Checking that you agree with the priorities we’ve identified from our discussions with you
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 11
This new approach means this plan is centred on how Details of the findings of our research on each priority we’ll meet your expectations, including keeping bills area, together with what we want to achieve in the affordable and dealing with a range of challenges that coming five years, are set out in the next six sections of lie ahead – for example, the expected rise in population this document. and the impact of changing weather patterns. Both our Strategic Statement and our draft five-year The discussions we’ve had have also helped shape Business Plan take account of our draft 25-year Water our long-term strategy. This is set out in our Strategic Resources Management Plan. This describes how Statement for 2015 to 2040 which covers our long- we’ll make sure there is enough water to meet our term commitments for the following six priorities. customers’ needs, now and in the future. Responsive customer service Having your say – next steps A constant supply of high quality drinking water During August and September 2013, we’re inviting you Removing wastewater effectively to tell us what you think about this plan. Looking after the environment We will do this through focus groups and telephone surveys, as well as our website, e-mail, Twitter and Better information and advice post. We’ll also be attending a range of local events to Affordable bills gather your comments. Please see page 4 for more details, or visit our website: www.southernwater.co.uk/haveyoursay We’ll use your feedback to update this plan and finalise it, before it’s submitted to Ofwat in early December 2013.
Getting your views on the options for our five-year Business Plan, including how much you’re prepared to pay Wave 6
April, May & June May – August August & September 2013 2013 2013
January Wave Wave 2013 5 7 Public consultation Getting your on our 25–year Getting your views views on our 25–year Water Resources on our five-year Strategic Statement Management Plan Business Plan
Come and tell us what you think of this plan. Visit www.southernwater.co.uk/haveyoursay for details of local events we’ll be at. Southern Water 12
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 13
Section Responsive 3 customer service Summary More information is set out on pages 14–16
What matters to you You expect us to deliver better customer service, which is more responsive and tailored to your individual needs. You also want us to deliver these improvements quickly. We’re confident we can do this by creating the right culture in our business and attracting, training and retaining great people who are focused on your needs. Based on your feedback, we’ve identified three key service areas we must deliver to meet your expectations. For each area, you told us the level of improvement you want to see.
Quick and effective responses to your queries A service that reflects local issues – Improvement required – Significant improvement required Understand and address your needs, concerns and expectations – Significant improvement required
Our promises for 2015 to 2020 What it will cost Our regulator, Ofwat, measures the quality of customer To deliver the service you expect from 2015 to 2020, service we provide, but this doesn’t cover all the it will cost a total of £316 million. aspects you told us are important to you. So we’ve developed a range of promises for this priority.
Quick and effective responses £284 £32 – Set out the standards of service you can expect from million million us in a Customer Charter. We will pay compensation directly to those of you we let down. – Resolve more of your queries the first time you Quick and effective Understanding contact us. Our target is 90 per cent first time responses and addressing resolution by 2020. under £1 your needs £0-20million million Understanding and addressing your needs & Reflecting local issues Reflecting local issues – Make sure more of you feel our service meets your By the end of this five-year plan, our average combined individual needs and those of your community. We will bill for water and wastewater services is expected to be set a target to increase the number of you who feel no more than £449 (excluding inflation). this way, then measure and report regularly on our performance. £32
Be amongst the best on our regulator’s league table for customer satisfaction by 2020. This will help show you The money we plan to spend on providing you with how we are improving customer service. responsive customer service will represent £32, or seven per cent, of an average bill.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 14
Find out more
Quic k and effective responses to First, we’ll reduce the need for you to contact us, by your questions and queries making our communications clearer, fixing things the first time, having clear ownership of issues by our staff and allowing you to easily manage your own account. You told us We’ll also test any significant changes we make to our services with customers in advance of making the change. You find it very frustrating when you have to speak to several people, or contact us a number of times, to get When you do need to contact us, we’ll make sure that: a problem fully resolved. You expect us to resolve your – Our staff have the skills and support they need to problems the first time you contact us. resolve most of your queries the first time you contact You also expect us to make it easier for you to contact us. On the rare occasions they can’t do this, we’ll us and provide service and information you can rely on. keep you up to date on progress, so you always know what is going to happen and when. – You can contact us in a way that suits you, whether that is by phone, text, email, our website, Twitter, Facebook or post. No matter how you get in touch, Our long-term strategy we’ll provide you with a quick and effective response. You’ve made it clear that you want us to provide much Our business customers will be able to choose from a better customer service as quickly as possible. So this wide range of services – from a low-cost self-service will be our immediate focus. option to a dedicated account managed service. In the long-term we’ll do the following: Some of you receive your drinking water from another – Continue to make sure we provide customer service water company. So, we’ll improve the way we work that matches the best companies. We are committed with other water companies in our region so we can to being leaders in excellent customer service. give you a more joined-up service. For example, we are currently working with a number of our neighbouring – Continue exploring new technologies and water companies to explore ways of helping customers communication methods, as well as new ways of in financial difficulty to pay their water bills through a working with customers, so we can keep pace with social tariff. your expectations. Our promise to you Our plans for 2015 to 2020 We’re determined to become a company where Set out the standards of service you can expect from everyone is focused on providing excellent customer us in a Customer Charter. We will pay compensation service. directly to those of you we let down. Resolve more of your queries the first-time you contact us. Our target is 90 per cent first time resolution by 2020. Be amongst the best on our regulator’s league table for customer satisfaction by 2020. This will help show you how we are improving customer service.
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 15
Under stand and address your needs, Our plans for 2015 to 2020 concerns and expectations We already have a dedicated team to make sure we have a better understanding of your needs and how we You told us can meet them. We will hold customer focus groups so we understand how you feel about our service and what we can do to improve it. These groups will represent You expect us to provide you with customer service all types of customers to make sure our services meet that is personal and tailored to your needs. everyone’s needs and expectations. We’ll also do the following: – Make sure the opening hours of our Contact Centre, Our long-term strategy where our staff deal with your phone calls, suit you. It’s clear you want us to make improvements in this – Extend the range of services we offer through our area quickly and we’re already working to do that. website and other channels, so you can manage your account when it’s convenient for you. In the longer-term, we’re committed to listening to you, so we always have a clear understanding of what you – Give you choices in when and how you receive and expect from us. We’ll do the following: pay your bill, including the option of online billing. – Make sure we lead the water industry in how we – Work with other companies to offer you additional engage with you to understand your priorities and services and products, such as water-saving devices, how we’re performing against them. to help you save water, energy and money. – Make use of innovative techniques to engage with From 2017, if proposed changes in the law go ahead, you to make sure we can gather feedback from all our all our business customers will be able to choose their customers. water and wastewater supplier. We’ll make sure we understand your needs and wishes so we can offer you Save water, save energy, save money the best possible value-for-money service and retain your custom.
Insight Manager, Jo Fielding-Cooke Our promise to you ‘Every aspect of our current metering programme has been shaped by our customers and Make sure more of you feel our service meets your we’ve earned widespread praise individual needs and those of your community. We for its innovative approach. We’re will set a target to increase the number of you who installing almost 500,000 new feel this way, then measure and report regularly on water meters by 2015 to help secure future water our performance. resources. We will carry out research to establish how we are ‘The views of customers have influenced how meters currently doing. This will help us set a clear target are installed and the support we provide around for improvement. metered bills. This support includes tailored face-to- face advice on how to reduce the amount of water and energy households use.’
Come and tell us what you think of this plan. Visit www.southernwater.co.uk/haveyoursay for details of local events we’ll be at. Southern Water 16
A service that reflects local issues As well as this, we’ll: and concerns – Spend more time talking to organisations, including local councils and charities, to better understand local priorities. We’ll then work with those organisations to You told us improve the services we offer. – Publish information on how well we’re performing in You would like to hear more from us about the each of the counties we serve. issues that affect you and your local area directly. – Continue to promote water efficiency and other community campaigns via local organisations, such as schools, community groups and allotment associations. Our long-term strategy You want us to make improvements in this area quickly and we’re already working to do that. Our promise to you In the long-term, we want to be recognised as a leading company in the way we work with customers and the Make sure more of you feel our service meets your communities we serve. individual needs and those of your community. We will set a target to increase the number of you who feel this way, then measure and report regularly on Our plans for 2015 to 2020 our performance. We’ll make sure we are a good neighbour, making our We will carry out research to establish how we are voice heard on local issues, helping co-ordinate joint currently doing. This will help us set a clear target working to resolve problems, such as flooding, and for improvement. building and maintaining local links. When we are working in your area we’ll let you know via letter, drop-in sessions and text updates. We’ll continue to work with local police and community groups to help protect you from bogus callers – people trying to trick their way into your home by pretending to be from Southern Water, or other utility companies.
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 17
Section A constant supply of high 4 quality drinking water Summary Further details can be found on pages 18–22
What matters to you You expect us to provide you with a constant supply of high quality drinking water, now and in the future. In particular, you want us to be able to cope with the challenges of changing weather patterns and population growth, without the need to impose restrictions, such as hosepipe bans. Based on your feedback, we’ve identified four key service areas we must deliver under this priority. For each area, you told us the level of improvement you want to see.
A reliable water supply, now and in the future Acceptable water pressure – Improvement required – Maintain current service Drinking water quality at least as high as Reductions in water hardness it is today – Maintain current service – Maintain current service
Our promises for 2015 to 2020 What it will cost From 2015 to 2020, it will cost a total of £758 million A reliable water supply to deliver the service you expect. – No restrictions on your water use, such as hosepipe bans. That’s unless there has been exceptional weather – at least two dry winters in a row. – Make better use of your water supply by reducing £503 £184 wastage. Our target is leakage reduction of 1.9 million million million litres a day by 2020. – Make sure you are without water for the minimum possible time, for example by mending burst mains quickly and efficiently. This will mean there is no A reliable water supply High quality increase in the average time you are without water. drinking water
High quality drinking water £71 million – Provide you with high quality drinking water – we will under £1 million maintain our current level of compliance with required quality standards (99.93 per cent), while continuing to aim for 100 per cent compliance. Water pressure Water hardness By the end of this five-year plan, our average combined Water pressure bill for water and wastewater services is expected to be no more than £449 (excluding inflation). – Make sure no more of you suffer from persistent low water pressure. 257 households are currently affected. £146 Water hardness – Help you to reduce the effects of hard water in homes The money we plan to spend on providing you with and businesses by providing better information. a constant supply of high quality drinking water will represent £146, or 32 per cent, of an average bill.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 18
Find out more
A reliable water supply, now and in the future Water for the future
You told us Water Quality and Policy Manager, Meyrick Gough
No matter what future challenges we face, you ‘We’re using a groundbreaking expect us to provide a reliable water supply. new approach in our 25–year Water Resources Management You want your water supply to be more ‘resilient’ Plan to develop more resilient – better able to withstand the challenges of extreme water supplies for our customers. weather, such as drought and a growing population. ‘Previously, the water industry has planned for Interruptions to your water supply, for example droughts based only on past weather patterns. following a burst pipe, is an area where you expect Southern Water has developed new modelling us to maintain our current quality of service. techniques that allow us to plan for a wider range of potential droughts, which could happen in the future. This means your water supply will be better able to cope with more extreme future weather patterns, reducing the likelihood that we’ll need to Our long-term strategy impose restrictions on how you use water.’ Over the next 25 years we will do the following: – Prepare for harsher droughts to create a more resilient water network and reduce the risk of water Our plans for 2015 to 2020 restrictions. Providing for growth & Making our water – Adopt new approaches to how we manage water, supplies more resilient including water re-use, underground storage and We will make sure we have enough water despite a desalination, to make your water supplies more growing population, economic growth, stricter laws on resilient. how much water we can take and the effects of changing – Develop a ‘mini grid’ in the South East by connecting weather patterns. more of our water network to other water companies. This will reduce the chance of water restrictions, such as This will make it easier to move water around our hosepipe bans, being needed from once every six years region and share supplies. in parts of our area, to once every 10 years across the – Reduce leakage from our water network from our region. current target of 88 million litres a day to 75 million The likelihood of more extreme water restrictions, litres a day by 2040. such as water supplies being cut off for part of the day – Use technology to make your water supply more or standpipes in the street, will fall from once every reliable, for example by putting sensors and monitors 80 years, to once in 200 years. Our 25–year Water in our water mains, so we can spot and deal with Resources Management Plan sets out our plans in detail. problems before they affect you. These include: – A further 1.9 million litres a day reduction in leakage. We currently have the lowest level of leakage per household of all the main water and wastewater companies in the UK, with 15.6 per cent of the
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water we put into supply lost through leaks on our We’ll replace about 250km of water mains by 2020. network of pipes, as well as customers’ pipes. That’s just two per cent of our total network – because of the high cost of mains replacement – so we’ll – New pipelines to help move water around our region carefully target this investment to ensure it delivers the and share supplies with South East Water and best value for money. Portsmouth Water. This will allow us to move water supplies to where they are most needed and is part We’ll also carry out work on key parts of our network, of our long-term plan for a mini-grid covering the such as service reservoirs, pumping stations and our South East. water supply works, to make sure we can maintain a reliable water supply. We’ll extend our real-time – Investigating future opportunities for water re-use, monitoring and increase the control we have of our desalination and trading water licences. We will also water network, enabling us to respond more quickly explore how sustainable our current water sources when problems occur. are for the future. We will also be making changes at a number of our water sources and supply works across the Our promises to you region. These changes will allow us to extract more water when it is most needed, without harming the No restrictions on your water use, such as hosepipe environment. bans. That’s unless there has been exceptional weather – at least two dry winters in a row. We will put flood protection measures in place at four of our water supply works at Testwood in Hampshire, If we do impose restrictions in any other Hardham in West Sussex and Bowcombe and circumstances, we will pay a financial penalty. Carisbrooke on the Isle of Wight. This will help make Make better use of your water supply by reducing sure they are not affected by flooding from rivers after wastage. Our target is leakage reduction of heavy rainfall, which will help us maintain a reliable 1.9 million litres a day by 2020. supply for you. If we fail to meet this target, we will pay a Finally, we’ll help you to reduce the amount of water financial penalty. you use by providing practical advice, as well as free Make sure you are without water for the minimum or discounted water-saving products. We will also work possible time, for example by mending burst mains with local councils and planners to make sure new quickly and efficiently. This will mean there is no developments, such as new housing estates, are as increase in the average time you are without water. water efficient as possible. Our target is nine minutes per customer per year. Operating and maintaining our water Interruptions to supplies are measured from the time network and water supply works we receive the first call from a customer about a loss of supply. These incidents are measured when We’ll make sure our water mains remain reliable so the interruption is longer than three hours. This is that you experience no more interruptions to your because, unlike with electricity, people often only supply, because of a burst main for example, than you notice they are without water some time after their do now. We’ll also make sure our network has enough supply has been affected. capacity to cope with new demand.
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Drinking water quality at Our plans for 2015 to 2020 least as high as it is today Building partnerships We’ll establish partnerships with land-users to reduce You told us the level of chemicals, especially from fertilisers, that get into our water sources. For example, we will Maintaining the quality of our drinking water at work with the South Downs National Park Authority its current high standard is one of your highest to manage nitrates around the Brighton area, so we priorities. It’s vital that you can trust the quality of do not have to carry out additional treatment at our water that comes out of your taps. water supply works. You’re also keen for us to tackle the small number Operating and maintaining our of problems where drinking water has an unusual water supply works taste, smell or colour, if it is cost-effective for us to do so. We’ll be investing in improved treatment processes at six of our sites, including Gore in Kent and Findon in West Sussex, where the levels of nitrates from fertilisers or pesticides in the water we treat have already increased. Our long-term strategy As well as routine maintenance of our sites, we’ll refurbish the treatment processes at more than half of Over the next 25 years we will do the following: our 94 water supply works to make them more effective – Work more closely with farmers, landowners and and efficient. businesses to reduce the amount of pesticides and Targeted improvement of water mains chemicals which get into rivers and underground water sources. This will reduce the need for us We’ll continue to clean, repair and replace our water to invest in more expensive treatment methods to mains where they may be affecting the taste, smell or remove these pesticides from drinking water. colour of the water. This will include renewing more than 25km of pipes – Target investment at our water supply works to in the second phase of our mains replacement scheme ensure they continue to operate reliably and enable in Chatham, Kent, to improve the supply of water to us to continue to meet the required quality standards 12,900 customers. for drinking water.
– Focus on replacing water mains that cause the most problems with the taste, smell and colour of your Our promise to you water supply. Provide you with high quality drinking water – we will maintain our current level of compliance with required quality standards (99.93 per cent), while continuing to aim for 100 per cent compliance.
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Acceptable water pressure Our plans for 2015 to 2020 We’ll take action to prevent new pressure problems arising as demands on our supply network increase. You told us This will include changing the way we run our network, along with some local investment to upgrade pumps Persistent low pressure is a problem for a small and renew water mains. number of customers. This can affect how well We’ll also continue to replace the pipes that lead showers, boilers and other household appliances work. from our water mains to your property where they’ve reached the end of their useful life and may be As demand for water increases and more households contributing to low pressure. connect to our supply network, you expect us to make sure problems with low pressure do not affect We’ll provide more information on mitigating the effects more customers. of low water pressure, so you can make changes yourself. We’ll also make sure we have knowledgeable staff available to provide you with tailored face-to- face advice on what you can do in your homes and businesses. Our long-term strategy Over the next 25 years we will do the following: Our promise to you – Make sure the number of households having problems with water pressure does not increase, as new housing Make sure no more of you suffer from persistent and business developments connect to our network. low water pressure. 257 households are currently – Solve persistent pressure problems and give affected affected. households one-to-one advice on changes they can This measure is based on the number of customers make to eliminate issues with their plumbing systems. at risk of receiving inadequate pressure on an ongoing basis. The minimum required standard is equivalent to the pressure needed to fill a one-gallon (4.5 litre) container in 30 seconds.
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R eductions in water hardness Our plans for 2015 to 2020 We’ve already updated our website so you can find information about water quality, including hardness, You told us for your postcode. We will raise awareness of how households and You find the hard water in our region inconvenient, businesses can reduce the effects of hard water. especially those of you who use water in your To do this we’ll: businesses. – Develop information and advice for customers on We take 70 per cent of the water we supply from managing water hardness. underground sources, many of which are in areas made up of chalk. This means the water naturally – Make sure our staff are trained to give you advice contains higher levels of calcium and other minerals tailored to your specific concerns. than water found elsewhere – something which does not affect the quality of the water, but does make it hard. Rather than significant investment you expect us to Our promise to you provide you with more information, so you’re better placed to manage the effects of hard water in your homes and businesses. Help you to reduce the effects of hard water in homes and businesses by providing better information. We will set a target to increase your understanding, then measure and report regularly on our performance. We will carry out research to establish how we are currently doing. This will help us set a clear target Our long-term strategy for improvement. Over the next 25 years we will do the following: – Improve the advice we provide to customers who find hard water a problem, and make that advice more widely available. – Work with manufacturers of water-softening products, so we can offer these to our customers at discounted prices. We’ll explore new technology or techniques for softening water. If they’re cost-effective, we’ll talk to you again about how we should invest in them.
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Section Removing wastewater 5 effectively Summary More information is set out on pages 24–27
What matters to you You expect us to maintain our sewers and wastewater pumping stations to remove wastewater effectively for you and future generations. It’s very important to you that we work harder to reduce flooding from our sewers. You told us the level of improvement you want to see across the key service areas which make up this priority. We’ve identified these areas from our detailed discussions with you.
Providing a reliable and effective wastewater Minimise flooding from sewers service, now and in the future – Significant improvement required – Maintain current service Limit unpleasant smells – Improvement required
Our promises for 2015 to 2020 What it will cost To deliver the service you expect from 2015 to 2020 A reliable wastewater service it will cost a total of £741 million. – Remove your wastewater reliably – making sure there is no increase in the number of blockages in the sewer network. This is a good indication that our system is performing well. £487 £239 million million Minimise sewer flooding – Achieve a 25 per cent reduction in the number of you who experience sewer flooding inside your homes and A reliable wastewater Minimise sewer businesses by 2020. service flooding £15 – Make sure there is no increase in the number of million incidents of sewer flooding affecting outside areas in your neighbourhoods. Limit unpleasant smells Limit unpleasant smells By the end of this five-year plan, our average combined – Reduce the number of you affected by smells from our bill for water and wastewater services is expected to be wastewater treatment works and pumping stations. Our no more than £449 (excluding inflation). target is a five per cent reduction in complaints about smells by 2020. £139
The money we plan to spend on removing your wastewater effectively will represent £139, or 31 per cent, of an average bill.
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Providing a reliable and effective Our plans for 2015 to 2020 wastewater service, now and Providing for growth in the future As a result of new housing and business developments by 2020, we expect to connect an extra 75,000 You told us properties to our wastewater network and serve an extra 180,000 people. We’ll aim to make sure the service you receive doesn’t You expect us to maintain the current high level of service now and for future generations, including suffer as a result of this extra demand on our network. managing the additional demand from housing We’ll achieve this by doing the following: development across the region. – Working with developers to encourage them to put You also expect us to ensure our network is resilient in sustainable drainage systems, such as drainage and able to cope with the challenges of the future, ponds, to manage rainwater run-off from roads and such as more extreme weather patterns. homes. This will help us manage additional demand on our sewer network. – Working with local councils and planning bodies, so we have a good understanding of expected Our long-term strategy population growth and future housing and business developments. This will enable us to plan effectively Over the next 25 years we will do the following: to meet future demand. – Make sure we can meet increased demand from a – Examples of this include the upgrade work growing population and new housing and business we’re carrying out in Hailsham in East Sussex developments. We will do this by working closely and Horsham in West Sussex, where significant with local councils and other organisations involved development is expected. This will make sure we in planning. This will enable us to create the extra can accommodate additional properties in these capacity in our system when and where it’s required. locations. – Use new technology, such as live monitoring systems. This will allow us to pinpoint and solve problems in our sewer network before they cause you Operating and maintaining our network of problems, as well as give you warnings about the risk sewers and pumping stations of flooding. It will also help us manage the effects of We’ll make sure our 39,600km long sewer network more extreme weather patterns to make sure these do and 2,375 wastewater pumping stations are well not harm the quality of service you currently receive. maintained to provide you with a reliable service. Between 2015 and 2020, we’ll replace or refurbish about 340km of sewers. Because of the very high cost of replacing sewers, we’ll target the parts of our network where we know we can bring about the greatest benefits. We’ll also carry out more sewer cleaning to prevent blockages.
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We’ll put more resources into keeping our drainage plans up to date so we fully understand how much Our promise to you capacity we will need for the years ahead. Remove your wastewater reliably – making sure there is no increase in the number of blockages in Tackling local problems the sewer network. This is a good indication that our Over the last two years, heavy rainfall in some areas system is performing well. We currently deal with has caused problems with infiltration – water in the about 23,000 blockages a year. ground working its way into our sewers. This can flood our sewers, reducing their ability to deal with the normal demands of wastewater from homes and businesses. We’ll carry out detailed technical investigations to Minimise flooding from sewers and understand how we can tackle this problem. prevent wastewater from entering Investigating the local causes of infiltration will help properties us design the most cost-effective solutions to deal with it. This will help us keep our sewers working as they should. It will also reduce our reliance on tankers You told us to remove wastewater when our sewers are flooded, helping us save money. Reducing the level of flooding from sewers is a top priority and you expect us to deliver significant improvement in this area. Integrating newly adopted sewers and You’re clear that sewer flooding inside homes and pumping stations businesses is unacceptable. In October 2011 we took responsibility for an estimated 17,500km of shared drains and sewers, which connect your properties to our network. This was a result of changes in the law covering all wastewater companies in England and Wales. From 2016, we’ll also take responsibility for about 640 Our long-term strategy pumping stations that are currently owned privately. Over the next 25 years we will do the following: We’re already removing blockages from these sections – Work to prevent all incidents of sewer flooding in of sewer when they occur – currently 11,300 each homes, gardens or local neighbourhoods. This will year. We have also started integrating the sewers into involve investing to replace or refurbish sewers that our network. are in poor condition, don’t have enough capacity, From 2015 to 2020, we’ll continue to ensure they are or are known to cause flooding. operating effectively and are maintained to the same – Work with local councils, planners and highways high standard as the rest of our system. We expect to authorities to tackle the risk of sewers flooding as a replace up to 70km of the sewers we have recently result of rainwater run-off, from roads and buildings, taken responsibility for. entering our network. We’ll also effectively operate and maintain the pumping stations we adopt.
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– Use new technology, such as live monitoring of our Our plans for 2015 to 2020 sewer network, to spot problems and take action We’ll bring down the risk of sewer flooding and make before they affect you. sure we significantly reduce flooding inside homes and – Step up our work in the community to help prevent businesses from sewers. blockages caused by baby wipes and fats, oils and We’ll focus on reducing the risk of blockages, which are grease. We’ll do this by providing better information a major cause of flooding from sewers, by: on what should and should not be put down the sink or the toilet and by extending our fat-collection – Carrying out targeted surveys of our sewers using service and distributing free ‘fat traps’. You can find cameras. out more in Section 7 of this plan. – Carrying out regular sewer cleaning work, targeted at areas with particular issues. Working together – Removing tree roots that have pushed through into our sewers.
Wastewater Infrastructure – Carrying out publicity and education campaigns to Manager, Andy Adams encourage more people to dispose of items such as nappies, wet wipes and cooking oil responsibly, ‘Flooding of roads, gardens and homes from rainwater run-off rather than flushing them down the toilet or putting has been a long-standing issue in them down the sink. parts of Middleton-on-Sea in West We will also do the following: Sussex. This is due to a number of causes, including local land drainage and water in – Carry out work at our wastewater pumping stations to the ground getting into the sewer network. prevent equipment failures. ‘To tackle the problem, we joined forces with the – Work with local authorities and other partners to Environment Agency, West Sussex County Council, tackle local flooding issues. This will include looking as well as the local residents’ association and together at the long-term flood risks. parish council. A detailed investigation was carried out to pinpoint the key causes. This drew upon all – Tackle sewer flooding at particular problem areas by available reports of flooding in the past, as well as improving the sewer network in these places. the findings from site visits, meetings with residents and a survey of local households. We’ll make sure flooding from sewers to outside areas doesn’t increase in the years ahead. We’ll prioritise the ‘Having made a joint decision on the best solution most cost-effective schemes and safeguard our schools, overall, we’re now finalising a plan to carry out the hospitals and children’s play areas. improvement work that’s needed.’
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Our long term strategy Our promises to you Over the next 25 years we will do the following: – Work with planners and developers to get funding Achieve a 25 per cent reduction in the number for odour control equipment at our works. This will of you who experience sewer flooding inside your homes and businesses by 2020. This would bring mean people moving into housing developments built down the number of such incidents from 2,755 to near our wastewater treatment works should not be 2,070 by 2020. affected by unpleasant smells from these works. If we fail to achieve this target, we will pay a – Continue to adopt new technology and design to financial penalty and cancel the annual wastewater manage our wastewater treatment more efficiently bill for those affected. If we are able to go further and effectively. This will help to prevent smells. and tackle more problems in a cost-effective way, we propose we should benefit financially.
Make sure there is no increase in the number of Our plans for 2015 to 2020 incidents of sewer flooding affecting outside areas in your neighbourhoods. We will continue to carry out routine maintenance at our pumping stations and treatment works, which will help reduce smells.
We’ll also make sure we run all of our sites in a way that keeps smells to a minimum.
Limit unpleasant smells We will invest in specialist odour-control equipment to tackle long-standing problems at our works at Portswood in Hampshire and Tonbridge in Kent. This will benefit 3,200 customers. You told us Our promise to you You want us to tackle smells from our wastewater treatment works and pumping stations. Reduce the number of you affected by smells from Although not a priority for significant investment you our wastewater treatment works and pumping expect us to tackle the worst and longest-standing stations. Our target is a five per cent reduction in cases quickly. complaints about smells by 2020.
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What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 29
Section Looking after 6 the environment Summary Further details can be found on pages 30–35
What matters to you You expect us to play a major role in looking after the environment. This includes taking the lead in working with local landowners, land-users, councils, community groups and others to achieve this. A key area you want us to focus on is raising the quality of our region’s coastal waters. Thanks to your feedback, we have identified four important areas to focus on under this priority. For each, you told us how much improvement you want to see. Rivers and streams free from pollution Minimise carbon emissions and use wastewater – Improvement required for renewable energy – Maintain current service Clean beaches and coastal waters Environmentally sustainable water and – Significant improvement required wastewater – Improvement required
Our promises for 2015 to 2020 What it will cost From 2015 to 2020, it will cost a total of £1.2 billion to Rivers and streams free from pollution deliver the levels of service you expect (see page 35 also). – Protect your local rivers, streams, beaches and coastal waters from the most serious kinds of pollution. Our target is no ‘serious pollution incidents’ caused by our operations by 2020. In 2012 there were 10. £743 – Protect your local rivers, streams, beaches and coastal £250 waters – we’ll maintain, as a minimum, 98.6 per cent million million compliance by our wastewater treatment works, while continuing to aim for 100 per cent compliance with required quality standards. Rivers and streams free Clean beaches and – (Both promises also apply to Clean beaches and from pollution coastal waters coastal waters).
Clean beaches and coastal waters £46 £156 – Increase the number of your beaches with excellent million bathing water quality – up 15 per cent from 41 to 48 million by 2020.
Minimise carbon emissions Minimising carbon Sustainable water emissions and wastewater – Minimise the effect our energy consumption has on the environment – we will maintain the proportion of By the end of this five-year plan, our average combined renewable energy we use despite our energy needs bill for water and wastewater services is expected to be increasing. no more than £449 (excluding inflation).
Sustainable water and wastewater £130 – Protect your local water environment – we will reduce the amount of water we take from the environment by The money we plan to spend on looking after the one per cent, despite predicted population growth of environment will represent £130, or 29 per cent, of an three per cent by 2020. average bill.
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Ri vers and streams free from pollution Doing things differently
You told us Water and Wastewater Strategy Manager, David Tyler ‘We’re exploring different ways You expect us to deliver further improvement in the of working to help us look after quality of water in your local rivers and streams. The the water environment across region we serve boasts some extremely rare habitats our region. For example, we will and some of the best quality fishing in the UK. You be working with farmers to help want us to keep it that way, and we agree we must reduce the level of phosphorous entering local rivers play our part. by maintaining wider grass strips along the edges of You recognise that we have to continue to improve fields. water quality to comply with new environmental ‘Too much phosphorous can upset the natural laws and support the improvements we will be balance of watercourses and affect fish and other making. wildlife. It comes from many sources, but mainly fertilisers, household cleaning products and human and animal waste. It can find its way into rivers and streams through run-off from local farmland, drainage systems and treated water which is released from our treatment works. Our long-term strategy ‘We can tackle this problem through costly investment Over the next 25 years we will do the following: to upgrade our treatment works. Alternatively, we can embrace more innovative and collaborative ways to get – Manage the impact of population growth and the same or better results. This could include a less increased demand for our services, while ensuring expensive upgrade of our works, combined with other there is no drop in the current high standard of rivers, solutions such as working with farmers and other land- streams and watercourses. users to change the way they manage land.’ – Invest in, maintain and operate our water supply and wastewater treatment works to comply with all existing and future quality standards set by the Environment Agency. We’ll target investment at the works that allow the greatest improvement to water quality. – Aim to have no pollution in your local rivers and watercourses when we return water to the environment from our wastewater treatment works.
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Our plans for 2015 to 2020 Operating and maintaining our inland Improving the local environment wastewater treatment works As a priority, we’ll work with other water users, such We’ll operate and maintain our 323 wastewater treatment as farmers, on innovative ways to manage water in the works that return water to rivers and streams to cater environment. for the expected additional demand for our wastewater service. It’s predicted that there will be 75,000 new For example, we are looking to work with local homes and businesses across the area we serve by 2020. landowners near the Loxwood stream in West Sussex to reduce the amount of phosphorous entering We’ll also increase levels of security at our key the watercourse. These catchment management operational sites to ensure they remain safe and techniques will reduce the need for investment in costly deter vandals and thieves whose actions can prevent new treatment processes at our works. treatment works operating effectively. We’ll target investment to increase the effectiveness Our sewer system has overflows which operate at times of our wastewater treatment to improve the quality of of very heavy rainfall. These act as ‘safety valves’, water we return to the environment. preventing sewers becoming overloaded, which can cause flooding to homes, gardens and businesses. We’ll be making improvements at a number of our treatment works, including Hailsham and Scaynes Hill We’ll ensure these overflows are effectively maintained in East Sussex, to enable us to remove phosphorous, and will invest to ensure all our overflows are added to which is used in soaps and detergents. our live monitoring network. This will enable us to take action as quickly as possible if issues occur. Phosphorous can upset the natural balance of rivers and streams. This investment is necessary to meet the requirements of both the Water Framework Directive Our promises to you and the Habitats Directive, and will help improve the quality of local rivers. Protect your local rivers and streams from the most serious kinds of pollution. Our target is no ‘serious We will also invest so we can cater for population pollution incidents’ caused by our operations by growth without harming the environment. 2020. In 2012 there were 10. For example, at Tangmere in West Sussex and Serious pollution incidents are those defined by Tunbridge Wells in Kent, we’ll be upgrading our the Environment Agency as having a major or treatment works to accommodate expected growth. significant impact on the environment. Our best ever performance is four such incidents in a year across As well as making improvements now, we will carry our whole region. out a range of technical studies into the impact of our If we fail to meet this target, we will pay a financial activities on the river environment, including on the penalty. rivers Medway and Stour in Kent and the rivers Arun Protect your local rivers and streams– we’ll maintain, and Adur in West Sussex. This will help us target as a minimum, 98.6 per cent compliance by our future work to improve our treatment and operating wastewater treatment works, while continuing to aim processes. for 100 per cent compliance with required quality standards. As the required standards change to reflect new laws, such as the Water Framework Directive, maintaining this level of compliance will require further improvements.
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Clean beaches and coastal waters We’ll make sure our coastal wastewater treatment works can cope with growing demand. We’ll also be carrying out work to protect local shellfish waters near You told us our Millbrook and Slowhill Copse treatment works in Hampshire. You expect us to make sure your local coastal waters We’ll also improve security at our main sites. This will are of the highest quality and identified this as an make sure they are more secure and better protected area in which you want us to deliver significant from vandalism and theft of equipment which can affect improvement. our ability to run our sites effectively. You value high quality coastal water for its positive effect on your health, as well as the contribution it makes to the economy by supporting tourism. Improving coastal waters The quality of coastal waters is affected by a number of things. These include the quality of the treated wastewater that we recycle from our treatment works, rainwater run-off from roads and farmland, especially in wet weather, and local issues, such as waste from Our long-term strategy boats and fishing. Over the next 25 years we will do the following: Currently, 41 of the 83 beaches in our region are – Make sure all coastal waters around our region meet forecast by the Government to reach the new, stricter, the new, stricter, national standards being introduced ‘Excellent’ water quality standard by 2020. This from 2015. standard must be met to be awarded Blue Flag status. – Work to bring the quality of coastal waters at all the Because of how important this issue is to you, we want beaches in our region up to the standard required for to go even further. We want to achieve the highest Blue Flag status. level of water quality at an extra seven beaches in our region, as long as this work is cost-effective. – Increase our work with other organisations, such as local councils, landowners and local communities to To meet this target we will have to carry out detailed stop rainwater run-off from towns and farmland from investigations to identify, and then control, sources of polluting coastal waters. pollution. We’ll consider a range of different approaches to make sure we meet our target, prioritising our investment in areas which will bring you benefits Our plans for 2015 to 2020 quickly and in the most cost-effective way. Operating and maintaining our coastal We’re committed to working with local councils, wastewater treatment works landowners, land-users, community groups and others to make sure we meet this target. We’ll make sure our 45 coastal wastewater treatment works are well maintained so they continue to provide a reliable service. The treated wastewater they recycle into the sea will meet all required water quality standards. This will help make sure it’s safe for you to swim in your coastal waters and marine life will be protected.
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Tackling polluting sewer overflows Minimise carbon emissions and use Our sewers contain overflows. These act as ‘safety wastewater for renewable energy valves’ when the sewers become overloaded, usually as a result of heavy rainfall. You told us Some of these overflows are along the coast. This means that at times, very diluted, but untreated wastewater goes into coastal waters. We should move ahead with investments in renewable energy that pay for themselves quickly to We’ll make sure these overflows are effectively help avoid future increases in your bills because of maintained and we’ll continue to use live monitoring to rising energy costs. check how they’re working, so we can react quickly to Some of you are keen that we go further and make any problems. reducing carbon emissions a priority, but others are concerned this would increase customer bills. Our promises to you
Protect your local beaches and coastal waters from the most serious kinds of pollution. Our target is no ‘serious pollution incidents’ caused by our operations Our long-term strategy by 2020. In 2012 there were 10. Over the next 25 years we will do the following: Serious pollution incidents are those defined by – Invest in generating renewable energy and become the Environment Agency as having a major or more energy-efficient. This can save you money significant impact on the environment. Our best ever through lower bills. For example, we’ll generate as performance is four such incidents in a year across our whole region. much power as possible from the gases given off when we treat wastewater. If we fail to meet this target, we will pay a financial penalty. – Explore new ways of producing energy from our wastewater treatment processes. Protect your local beaches and coastal waters – we’ll maintain, as a minimum, 98.6 per cent compliance – Move to more fuel-efficient vehicles as we renew by our wastewater treatment works, while continuing our fleet. to aim for 100 per cent compliance with required quality standards. – Look at water treatment technology that reduces carbon emissions. Increase the number of your beaches with excellent bathing water quality – up 15 per cent from 41 to 48 by 2020
If we do not meet this target, we will pay a financial penalty. If we beat it, we propose we should receive a financial benefit.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 34
Our plans for 2015 to 2020 En vironmentally sustainable water We recognise the range of views our customers have and wastewater services about how far and how fast we should invest to reduce our carbon footprint. However, you all agree we should You told us make investments that will save money or provide protection against increases in future energy costs. You expect us to work to protect your local environment In the next five years, we’ll focus on energy efficiency as a priority. and carbon reduction schemes that will give the fastest return on our investment. You’re aware we’re already making significant improvements and would like us to continue this work. This means we’ll upgrade our equipment at four of our sites to generate more power from the sludge produced by treating wastewater.
We’ll also install our first wind and solar power units at Our long-term strategy a number of our sites. These will generate 12 GWh of renewable energy, enough to power 3,600 homes for Over the next 25 years we will do the following: a year. – Lead the way in promoting work with councils, We already generate around 15 per cent of our energy landowners, land-users, other water companies needs from renewable sources. As our energy needs and major water users to build a joined-up and increase as a result of rising demand and higher co-ordinated approach to looking after the water treatment standards, this will enable us to maintain the environment. proportion of renewable energy we use. – Promote more water trading between ourselves, other water companies, farmers and industry to make the best use of the water. Our promise to you – Ensure the amount of water we take from the environment is sustainable, so we don’t damage the Minimise the effect our high energy consumption delicate ecosystems of local rivers. has on the environment – we will maintain the proportion of renewable energy we use despite our – Continue to promote water-saving measures in energy needs increasing. homes and businesses, which will help us meet rising demand and avoid putting too much pressure on water resources. – Dispose of the sludge produced by treating wastewater in line with national standards and look at how we can use the sludge to generate more renewable energy.
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 35
Our plans for 2015 to 2020 We’ve already started to do this. For example, under our plans to manage water resources in the future, we Sustainable water abstraction will re-use treated wastewater from our Ford treatment To make sure we don’t damage the environment by works in West Sussex to help boost flows in the taking too much water from sources, such as rivers and western River Rother, particularly during droughts. This underground sources, we aim to reduce the amount of will help us continue to take water from the river at water we put into our supply system. This is despite the Hardham to meet demand, without damaging the river. additional demand we’ll face from expected population We will also extend our work with highways authorities, growth of 76,000 people across the areas to which we councils and developers to develop joint plans for supply water by 2020. managing rainwater run-off to reduce the amount of We’ll achieve this in a number of ways, including run-off from roads and buildings that ends up in our reducing leakage from our network by a further wastewater system. 1.9 million litres a day by 2020. We’ll also give you advice on reducing the amount of water you use to help bring down average water use by 14 litres per person Our promise to you per day by 2020. We will change the way we manage local water Protect your local water environment – we will reduce resources. For example, we’ll revise our licence and the amount of water we take from the environment by take more water in winter from the River Medway in one per cent, despite predicted population growth of Kent when the river flows are higher, and less water in three per cent by 2020. the summer when the flows are lower. For the longer-term, we’ll be carrying out investigations into the impact of how we take water from the environment across the region, including at Lukely Brook on the Isle of Wight and the River Itchen in Hampshire. This will help us understand what more we need to do. Further information on what it will cost Integrated water management To meet rising demand for our water and wastewater We may carry out further work to deliver services, while looking after natural resources, we’ll environmental improvements following new begin to plan and operate our water supply and Government regulations. wastewater operations as one integrated cycle. These new policies are under review and could be updated before we submit our plan to Ofwat We’ll also look at how we can link them to the needs in December 2013. This means the costs for this and goals of others, such as farmers, local authorities priority detailed on page 29 might change. and environmental organisations.
Come and tell us what you think of this plan. Visit www.southernwater.co.uk/haveyoursay for details of local events we’ll be at. Southern Water 36
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 37
Section Better information 7 and advice Summary More information is set out on pages 38-41
What matters to you You want us to provide you with better information and advice about our water and wastewater services. This will help you make informed choices about how you use them, as well as understand how we spend the money we receive through your bills. You told us the level of improvement you want to see across the key service areas which make up this priority. We’ve identified these areas from our detailed discussions with you.
Information on how to save water A clear, easy to understand bill – Improvement required – Significant improvement required Advice on avoiding blocked drains Information about where your money goes – Significant improvement required – Significant improvement required
Our promises for 2015 to 2020 What it will cost By being more targeted and efficient in our approach, Ways to save water we will make big improvements at a relatively low cost – – Provide you with better advice on how to save water £9 million. and help you save money on your water and energy bills. Our target is a reduction in average water use from its current 149 litres per person per day to £6 £2 135 litres by 2020. million million
Avoiding blocked drains Ways to save water Avoiding – Provide you with better advice to help prevent blocked blocked drains drains and sewers in your area. We will target an increase in the number of you who know what you can do to prevent blockages. under £1 under £1 million million Easy to understand bills
– Provide you with clearer bills so you don’t need to Easy to Where your contact us because you can’t understand them. Our target is a 50 per cent reduction in bill queries by 2020. understand bills money goes By the end of this five-year plan, our average combined Where your money goes bill for water and wastewater services is expected to be no more than £449 (excluding inflation). – Provide you with better information about what we do, why we do it and what it costs. We will set a target to £1 increase your understanding of how we use the money we receive through your bills, then measure and report regularly on our performance. The money we plan to spend on providing you with better information and advice will represent £1, or under one per cent, of an average bill.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 38
Find out more
Information on how to save water In addition: – We will build stronger partnerships with other organisations, so we can use their knowledge and You told us skills. These partnerships will help us reach more of our customers and let them know the action they can You expect us to provide you with better information take to save water. on ways to save water. – We will give you discounts on water-saving products By 2015, 92 per cent of customers we supply water and services. to will have a water meter. This is helping you save – We know it is important to listen to young people water, energy and money, as well as protecting the environment. – our customers of tomorrow. We will extend our award-winning education programmes to every school in our water supply area. Each school will be offered water-saving devices. Our long-term strategy – We will continue to work on water and energy efficiency with community groups. We will offer You expect us to make improvements in this area as grants to support projects, as well as provide free quickly as possible and we’re already working to do this. water and energy-saving products. In the long-term, we’ll do the following: – We will offer tailored advice to business customers, – Continue to build on our industry-leading work to including a dedicated scheme for small and medium- promote water efficiency and reduce the amount of sized businesses, and in-depth audits of water use water used. for companies that use a lot of water. – Reduce and maintain the average amount of water use below 130 litres per person per day, despite an increase in demand. Our promise to you
Provide you with better advice on how to save water Our plans for 2015 to 2020 and help you save money on your water and energy bills. Our target is a reduction in average water use We will make information and advice more widely from its current 149 litres per person per day to 135 available, as well as making it clear how we can help litres by 2020. you reduce your bills. If we do not meet this target, we will pay a financial We will use the information we collect from each penalty. If we beat it, we propose we should benefit water meter to make our advice more relevant to our financially. customers, whether they are a gardener, have a large family, or live alone. We will visit customers at home, particularly those who are struggling to pay their bills, to provide tailored advice and support on how to reduce the amount of water and energy they use, and cut their utility bills. Our staff will be able to install water and energy saving products. We’ll aim to carry out 10,000 such visits by 2020.
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 39
Ad vice on avoiding blocked drains and sewers Fighting the fat
Press and Public Relations Officer, You told us Maria Harrison ‘We had a particular problem in You want us to provide better information on how East Preston, West Sussex, with you can avoid blocked drains and sewers. sewer blockages caused by fat, oil This will help reduce the number of blockages and and grease (FOG) being poured so bring down the cost of us providing a reliable down kitchen sinks instead of service. In turn, this will help keep your bills more being put in the bin. We joined forces with the charity affordable. Work This Way to set up and promote a cooking oil recycling scheme in the area. ‘During its first year, 650 litres of used cooking oil a month were being recycled as bio fuel instead of going down the plughole. During this period, the number of sewer blockages caused by fat, oil and grease in East Preston dropped from 119 in 2011 Our long-term strategy to 51 in 2012 – a reduction of 57 per cent. We plan This is an area where you want us to do much more to roll out this initiative in a number of other areas and as soon as possible. across our region.’ We want to lead UK water companies in reducing the flooding and pollution caused by things we pour down the sink, or flush down the toilet, leading to blockages. In the longer term, we will work hard to increase public Our plans for 2015 to 2020 awareness of this issue. Our sewers are designed to take away ‘natural waste’, so baby wipes, fat, oil or grease can cause them to block. Every year, we clear about 23,000 blockages in our sewers. The number of issues we deal with has doubled since October 2011 when we took over about 17,500km of shared drains and sewers. These were previously the homeowners’ responsibility. A large number of these blockages can be prevented, if we work together. By providing better information on the causes, we will help reduce blockages in sewers and private drains. We will target the parts of our network where sewer blockages are a particular problem. We’ll do this through a dedicated information and publicity campaign, together with work, such as cleaning sewers with a jet of high-pressure water, known as ‘jetting’.
Come and tell us what you think of this plan. Visit www.southernwater.co.uk/haveyoursay for details of local events we’ll be at. Southern Water 40
We will also do the following: A clear, easy-to-understand bill – Extend our fat recycling service, working with local charities which collect used cooking oil from local businesses and turn it into bio-diesel. This will not You told us only help prevent blockages, it also helps protect the environment. You want your bills and the letters we send to be – Work closely with business customers to help them clear and easy to understand. You expect us to make understand the risks of getting rid of fat, oil and this change straight away. grease through the public sewer system and give them advice on the alternatives. – Give households better information on how to stop fat, oil and grease blocking drains and what should not be flushed down the toilet. Our long-term strategy – Continue working with schools, youth groups We’re already working on making your bills clearer and community groups to raise awareness about and easier to understand. Once we have made these the causes of blocked drains and build a better changes, we will keep listening to your views to make relationship with our customers of the future. sure we are meeting your expectations. All our bills and letters will be easy to understand and contain advice that is relevant to you. You will have the Our promise to you information you need to make decisions.
Provide you with better advice to help prevent blocked drains and sewers in your area. We will Our plans for 2015 to 2020 target an increase in the number of you who know For many of you, the bill we send is the only contact what you can do to prevent blockages. you have with us. For some of you, your bill may raise We will carry out research to establish how we are questions or prompt you to contact us for more advice currently doing. This will help us set a clear target or help. for improvement. By sending you clearer bills, containing the information you require, we will reduce the need for you to contact us, which will help us reduce our costs. These savings will be reflected in your bills.
Some customers have their water provided by another water company. We will work with other water companies to make bills, letters and information clearer and provide a more joined-up service.
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 41
By 2015, most of the customers we supply water Our plans for 2015 to 2020 to will have a water meter and will be able to see Our plans focus on open, honest reporting. We have how much they pay for the water they use. To help just published an annual report, which includes you manage how much water you use, we’ll do the information about where your money goes and how we following: are performing. – Provide online information about the amount of water Sometimes things go wrong. We are committed to you use, and let you receive your bill electronically being much more open when this happens so you and pay through our website. understand what happened and what we will do to – Give business customers access to a detailed online fix it. breakdown of water use, as well as the opportunity to When we have made difficult choices we will share choose to receive a single bill for multiple sites. these with you, so you can judge whether we have made the right decision. Our promise to you . We know most of you can’t choose your water company, so we want to set a high standard and give you a fair Provide you with clearer bills so you don’t need to deal. contact us because you can’t understand them. Our target is a 50 per cent reduction in bill queries by 2020. – Each year we will report on how we’re doing against the targets we set out in this plan.
– We’ll explain how the money you pay contributes to meeting each of the six priorities set out in this plan. Inf ormation about where your money goes Our promise to you You told us
Provide you with better information about what we You care about value-for-money more than do, why we do it and what it costs. We will set a ever before. target to increase your understanding of how we You want to know how we spend the money we use the money we receive through your bills, then receive through your bills, so you can be sure we are measure and report regularly on our performance. using it wisely to provide the services you expect. We will carry out research to establish how we are currently doing. This will help us set a clear target for improvement.
Our long-term strategy Our long-term aim is for you to feel that we provide great value-for-money and have enough information about what we do.
We will always be open and honest about our performance and what we are spending money on. We will clearly explain what we do and why we are doing it.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 42
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 43
Section 8 Affordable bills Summary Further details can be found in pages 44-47
What matters to you You expect us to work more efficiently, so we will deliver savings of £180 million on our costs by 2020. This will allow us to meet the promises set out in this plan with bills £20 a year lower than they would otherwise be for each household we serve. On top of these efficiency savings, we will invest £14 million (as set out below under the costs for Efficient services) focused on helping us to keep our costs to a minimum, and your bills affordable, over the longer term. We will do this by investing in innovation, research and new technology, as well as helping you to save water to save money. You also want us to provide support to customers in genuine financial hardship.
More efficient services through innovation, Practical ways to save water and money research and new technology – Improvement required – Improvement required Helping ensure everyone can afford their bills – Improvement required
Our promises for 2015 to 2020 What it will cost To keep your bills affordable over the longer term, we’ll Efficient services invest £16 million, as set out below. – Keep your bills as low as possible – we will be making efficiency savings of £180 million during 2015 to 2020. £14 £6 million million* Ways to save water and money * – Provide you with better advice on how to save water Efficient services Ways to save water and help you save money on your water and energy through innovation and money bills. Our target is a reduction in average water use from its current 149 litres per person per day to 135 £2 litres by 2020. million
Help ensure everyone can afford Help ensure everyone their bills can afford their bills – Support more of you who are in genuine financial * Included in costs for Better information and advice hardship. We will set a target to increase the proportion of you who take up the support we By the end of this five-year plan, our average combined offer, then measure and report regularly on our bill for water and wastewater services is expected to be performance. no more than £449 (excluding inflation). less than £1 * This promise also appears in Better information and advice (Section 7). The money we plan to spend on ensuring your bills remain affordable will represent less than £1, or under one per cent, of an average bill.
Come and tell us what you think of this plan. Visit www.southernwater.co.uk/haveyoursay for details of local events we’ll be at. Southern Water 44
Find out more
Mor e efficient services, through Our plans for 2015 to 2020 research and technology During the next five years, we’ll cut our total costs by £180 million. You told us This represents an average saving of about £20 a year for every household we serve during the course of this plan. These savings mean your bills from 2015 to You want us to make the most of new technology by investing in research and working with others to 2020 will be lower than they would otherwise be. bring you improved services at lower cost. If we manage to make greater savings we will share In particular, you want us to look at areas where these with you from 2020. there are existing issues or clear opportunities to get We’ll bring our costs down in a number of ways, quick results. You don’t want us to take unnecessary including the following: risks, but you do expect us to challenge the way we do things right now. – Becoming better at buying the goods and services that we use and improving the way we plan and manage construction projects. – Improving the customer service we offer, including Our long-term strategy more online options, so you will have to contact us less. This will allow us to save on our costs. We will focus on making sure our services are as efficient as they can be, using research, technology and – Targeting our investment more effectively and doing innovative solutions where this is cost-effective. more routine maintenance, rather than waiting for things to go wrong. Over the next 25 years we will do the following: – Producing more of the energy we use from – Use new technology to monitor our water mains and wastewater processes, wind and solar power. This sewers in real-time, so we can identify problems more will save money and reduce the effect we have on quickly and maintain reliable services for you. the environment. – Explore water and wastewater treatment technology – Reduce the energy and chemicals we use by which has a low carbon footprint to help us save improving how we monitor and control our network energy and money. and treatment works, and researching chemical-free – Continue to assess the case for fitting smart water water supply and wastewater treatment options. meters, which give you more information about your – Using new low-cost technologies to find and fix leaks. water use and allow us to identify the information and This will reduce leakage in an efficient way. advice you need. Smart meters also help us manage our water network more effectively. – Working with others, such as farmers, to find solutions to local issues, if this is more cost-effective – Work with local universities to tap into the latest than investing in more water supply and wastewater research. We will increase our support for joint treatment processes. For example, working together research with other companies and organisations to to reduce the level of fertilisers (due to run-off from spread the cost of finding solutions to problems that fields) in water sources. affect the water and utility industries.
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 45
In the long-term we will do the following: Our promises to you – Our ambition is for water efficiency to have the same public profile as saving energy and recycling Keep your bills as low as possible – we will be making efficiency savings of £180 million during – Explore the benefit of installing smart meters to 2015 to 2020. provide detailed information on your water and If we fail to meet this target, our shareholders will energy use. receive a lower return on their investment. If we manage greater savings than this, we propose Our plans for 2015 to 2020 we should receive a financial benefit before these additional savings are reflected in your bills after We will help you use less water, which will help reduce 2020. your water and energy bills. We aim to reduce the average water use per person per day from its current 149 litres to 135 litres by 2020. To do this we will do the following: – Improve and extend our programme to give Pr actical ways to save water and households advice and support to help them save save money water, energy and money. – Offer home visits by specialist staff to provide tailored In Section 7 on Better information and advice, we advice and support on how to reduce the amount of have detailed a range of ways in which we’ll help and water and energy you use and so help you cut your support you to save water and money. Please see bills. These teams will also be able to install a variety below for further detail. of water-saving and energy-saving products. – Offer you a wider range of free and discounted You told us products, such as showerheads and toilet-flush devices, to help you save water and energy. You know you can make choices in the way you use – Expand our programme of visits to schools to take in water, which will have an impact on your water and every school in our water supply area. Each school energy bills. You have asked us to help by providing will be offered water-saving devices during these information, practical advice and support. visits. We’ll also teach pupils about water and energy efficiency in schools and at home to save money. – Continue to work on water and energy efficiency with local community groups. We will offer grants to Our long-term strategy support projects, as well as free water and energy- Through our metering programme we’re already saving products. leading the industry in promoting water efficiency and – Offer tailored advice to business customers, including reducing the amount of water used. This programme a dedicated scheme for small and medium-sized has identified a clear link between water efficiency and businesses and in-depth water-use audits for energy efficiency – over 20 per cent of energy used in companies that use a lot of water. the home goes on heating water.
We want to hear your views on this plan. You can write to us at: Southern Water Business Plan, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 46
– Build better links with other organisations to help Our promise to you reach more customers. – Continue to develop our award-winning debt advice Provide you with better advice on how to save water team to make sure we can help customers who are and help you save money on your water and energy finding it difficult to pay their bills. bills. Our target is a reduction in average water use from its current 149 litres per person per day to 135 We will always take a responsible approach to helping litres by 2020. * our customers in debt, giving them good advice, helping them contact other support organisations and * This promise also appears in Section 7 giving our support through assistance schemes. – Better information and advice. We can’t solve the problems of debt alone, that’s a bigger issue for society. However, we have a part to play, and will continue to do so.
Help ensure everyone can afford A helping hand out of debt their bills
Head of Customer Billing Services, You told us Michelle Simpson ‘The costs associated with unpaid The services we provide are essential for life and customer bills make up £18 of our health. You are clear you want us to help our most current average £449 water and vulnerable customers with their bills. wastewater bill. You told us we should work to make more people ‘We wanted to help ease the pain aware of the range of support we offer and make for households struggling in the current economic sure those most in need can tap into that support climate and reduce the amount of debt we’re owed. easily. So, we set up a dedicated Debt Advice Centre, However, you are keen that any financial support offering specialist support and advice, including a we offer is accompanied by clear and easy-to-follow variety of payment plans and tariffs to suit people’s advice on how to use less water. different circumstances. ‘The Centre’s award-winning team has attracted praise from customers and debt advice agencies and also increased the amount of debt recovered in its first year.’ Our long-term strategy We’re already looking at introducing a new ‘social tariff’ to help the most financially-vulnerable customers by ensuring they receive a bill they can afford. We have also set up a Debt Advice Centre, which has been recognised as leading the industry. In the long-term, we will do the following: – Provide a wider range of tariffs to help specific customers.
Tell us what you think of this plan. E-mail us via [email protected] Five-year Business Plan 2015 to 2020 47
Our plans for 2015 to 2020 Difficulty paying your bill? We will continue to make sure our debt advice team is focused on customers who have genuine problems affording their bills. As part of this we’ll do the We understand that our customers may following: experience financial problems, particularly in these difficult economic times. If you’re having – Make sure our customers with serious financial problems in paying your water bill, we can help difficulties can talk to trained advisors and get in the following ways: face-to-face advice and information to help them cut their water and energy use and so make bills more WaterSure affordable. You may be entitled to a reduction in your bill if – Work with housing associations and other social you have a water meter and use a large amount landlords to offer advice on managing debt and water of water. To qualify, you must meet certain and energy efficiency. This will help us reach out to criteria. and support more customers in financial difficulty. Water Direct We will increase the number of home visits we make If you’re claiming Income Support, Jobseeker’s and provide advice on saving water and energy, as well Allowance, Employment Support Allowance or as claiming benefits, so we provide practical solutions Pension Credit, Jobcentre Plus may consider that really help. paying us directly out of your benefits. We will also introduce a discounted social tariff to help customers in financial difficulty to afford their bills. This NewStart will encourage them to keep up with paying their bills If you’re able to start paying what you owe for and reducing their debt. This will not only help them, the current year by regular instalments, we’ll pay but also the rest of our customers by bringing down the the same amount for you from your arrears. overall level of debt. Charitable Trust Fund An important part of these changes will be forming partnerships with other organisations, which can help The Southern Water Charitable Trust Fund can us to reach customers and provide expert support to offer financial assistance in cases of extreme help them. hardship. For further details on the support we can offer, please visit our website Our promise to you www.southernwater.co.uk and click on Your bill & account. Support more of you who are in genuine financial You can also call us on freephone hardship. We will set a target to increase the 0800 027 0363 (8am–8pm Monday to Friday proportion of you who take up the support we offer, then measure and report regularly on our and 9am–1pm on Saturdays). performance. We will carry out research to establish how we are currently doing. This will help us set a clear target for improvement.
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Section
Your bill 9
We are confident we can meet the priorities set out in this plan with your bills rising by no more What it might mean for you than the rate of inflation – in line with the price of most everyday goods and services – but no The table below gives you an idea of how much your further. This compares to an average rise in bills bill could be. of about seven per cent above inflation from It is based on the typical amount of water used by different sized households and types of businesses. For 2010 to 2015. each example, we have assumed you have a water meter. For 2013 to 2014 our average annual bill for household Under our plan, average bills will rise by no more than water and wastewater services is £449 (£158 for water inflation each year. Inflation is difficult to forecast accurately, so we are showing bills with and without services and £291 for wastewater services). it. We have used the best available estimates, but the This works out at less than £1.25 a day for both services. actual rate of inflation, and your bills, could be higher or lower than shown.
We think this represents really good value for money and For the below figures for 2020 including inflation, we compares to average household spending: have assumed inflation of 3.2 per cent for 2014 to 2015 and 2.9 per cent a year for 2015 to 2020. £3.99 a day on gas and electricity. Source: Ofgem, Electricity and Gas Supply Market Indicators, Aug 2013 2015 2020 2020 £1.31 a day on landline and mobile telephone (excl. (excl. (incl. services, including mobile data. inflation) inflation) inflation) Source: Ofcom, The Communications Market 2013 Single person, with no garden Many of our customers receive only wastewater services Water and wastewater services £280 £280 £333 from us and their water is supplied by a different water Wastewater only £180 £180 £214 company. Under this plan, our average wastewater bill Water only £100 £100 £119 in 2020 will be £291 (not including inflation). Two-person household, A small number of customers receive only water with garden and no children services from us and their wastewater is taken away Water and wastewater services £449 £449 £535 and treated by another company’s wastewater system, Wastewater only £287 £287 £342 or by a cesspit or septic tank. Under this plan, our Water only £162 £162 £193 average water bill in 2020 will be £158 (not including inflation). Couple with two children The average bills and the costs set out in this plan are Water and wastewater services £584 £584 £695 based on our best understanding of a range of factors. Wastewater only £373 £373 £444 Water only £211 £211 £251 As we finalise this plan, we will update it to reflect any changes we need to take account of – such as the cost of borrowing money to help fund this plan being higher Small business customer* or lower than we expected. Water and wastewater services £6,592 £6,592 £7,848 Wastewater only £4,228 £4,228 £5,033 Water only £2,364 £2,364 £2,815
* From 2017, subject to legal changes, those of you who Large industrial customer are business customers will be able to choose your water (trade effluent)* and wastewater supplier. Water and wastewater services £218,050 £218,050 £259.605 Wastewater only £146,529 £146,529 £174,454 Water only £71,521 £71,521 £85,151
What do you think of this plan? Go to www.southernwater.co.uk/haveyoursay and give us your views. Five-year Business Plan 2015 to 2020 49
Keeping your bills affordable How the average bill breaks down You have told us how important it is for us to keep bills affordable for everyone. We want to make sure all of you Less than £1 receive a bill you can afford and that everybody pays Affordable bills their fair share. £1 Better information We know that for many of you your income has not kept and advice pace with inflation over the last few years, putting a real £130 strain on your household budget. Looking after the environment Independent forecasts suggest that from 2015 to 2020 incomes should begin to rise faster than prices, making water and wastewater services, on the whole, more affordable. £139 However, those with the lowest incomes are likely to see Removing Total bill wastewater = £449 pay rises less than inflation. So even though water bills effectively will not rise by more than inflation, they will take up a bigger share of these households’ income. As we continue to develop our plan over the next few months, we’ll be looking closely at how we can make £146 A constant supply the improvements you expect at a lower cost. of drinking water We’ll also provide extra support to those of you who need it, including advice on saving water and energy £32 and claiming benefits. We’ll put you in touch with other Responsive customer service organisations which may be able to help you and we’ll develop special tariffs for those most in need.
In particular, we’ll help households with very low The glass diagram above shows how much of the incomes, which are most likely to see their incomes fall average bill would go towards delivering each of the and increase the proportion of customers who take up six priorities set out in this plan. the range of support we offer when in genuine financial hardship. We are making efficiency savings of £180 million in the next five years. In addition, we are spending If you are having difficulty paying your bill, please £14 million under the ‘Affordable bills’ priority to see page 47 of this plan for details of how we explore new technology and ways of working to help us can help. reduce our costs further. These savings will help keep your bills down. Some priorities, such as Looking after the environment, involve substantial long-term investment. These costs are passed onto you gradually over a number of years through your bills. This means the proportion of the bill which each priority makes up may be bigger or smaller than the expenditure set out on pages 13, 17, 23, 29, 37 and 43 would suggest.
We want to hear your views on this plan. You can write to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX. Southern Water 50
Section
A balanced plan 10
The cost of delivering our plan Becoming more efficient We will need to spend about £3 billion from 2015 to We have studied our costs and looked at how we can 2020 to meet your expectations, ensure a good service bring them down. As a result, we’re targeting savings for future generations and meet our legal obligations. worth about £180 million from 2015 to 2020 by being more efficient. The majority (98 per cent) of our income comes from the money you pay through your bills. We also receive These savings, which add up to about £20 per money from developers, when they connect new household per year during the course of this plan, allow properties to our network, and other sources, such as us to make the improvements you have told us you supplying water to neighbouring water companies. expect, without increasing your bills beyond the rate of inflation. We have also been talking to customers The rate of new housing development in our area about whether they would prefer to have lower bills or means the number of customers we serve is growing. improved services in the years ahead. Between 2015 and 2020 we expect to provide water to an extra 76,000 people and treat wastewater from an The key areas where we plan to operate more extra 180,000 people. efficiently are: While this will add to our costs, it means the amount Becoming better at buying goods and services we need to spend to improve services is spread across and improving the way we plan and manage big more customers. construction projects. Improving the standard of customer service we Our owners and investors offer, including providing more online options, so you will need to contact us less. Targeting our investment better and doing more Southern Water is owned by Greensands Holdings Limited. The shareholders of Greensands Holdings routine maintenance to prevent things going wrong are a consortium of infrastructure funds and in the first place. pension companies, with no single shareholder having majority control. The principal investors Working with others, such as farmers or local are Australian pension funds, a fund advised by authorities, to find joined-up solutions to prevent JP Morgan Asset Management and a fund advised flooding and reduce pesticides in water sources. by UBS Global Asset Management. Producing more of the energy we need from Pension funds are attracted to investments like wastewater treatment and wind and solar power water companies because they generally provide a steady, low-risk return on the money they put to save money and reduce the effect we have on in. This enables these funds to cover the costs of the environment. pension payments to their members. Shareholders of Greensands Holdings are represented on our Board through two of seven How we compare on efficiency non-executive directors. There are four non-executive As well as looking hard at our own costs, we have directors and the Chairman who are independent of the shareholders. compared our costs with those of other water companies. This has found that our water supply services are more efficient than average. In fact, our running costs are among the best in the water industry. However, our wastewater services are less efficient than other
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water companies, so we are challenging ourselves to Keeping our promises significantly reduce how much we spend in this area. There are also risks in delivering the promises we have We have also had an independent analysis to compare made in this plan. us against leading companies in other sectors which We have set ourselves challenging targets in the areas carry out similar activities, such as billing customers. where you have told us you want to see the most This has helped us identify more areas where we can improvement. make savings. However, our performance against these targets may be These savings will be reflected in your bills from 2015. affected by factors beyond our control, such as extreme If we manage to make greater savings, these will be weather. Some of our promises also involve working reflected in your bills after 2020. closely with partners, such as local councils, to co- ordinate action. Risk and reward If we do not keep our promises, we think it is right that we should face a financial penalty (see the example on Water companies are considered to be ‘safe’ page 52). Therefore we propose to link some of these investments because the services they provide are promises (see pages 6 and 7) to a range of incentives, essential for daily life. Ofwat, our regulator, makes sure so we pay a financial penalty if we do not meet the returns to investors are reasonable and fair. required target, or benefit financially if we beat it. We Even so, it is important that we understand the risks will talk to you about how we set and apply these we face and manage them, so we strike a fair balance incentives as part of our detailed customer research on between our customers and our shareholders. this plan. In producing this plan, we’ve considered these risks in If we keep all of our promises in this plan for the more detail than ever before to measure how we might amount that we forecast, our shareholders will earn a be affected by them and how we can manage them fair return on their investment, but no more. They will better. The key risks are: earn higher returns only if we deliver over and above what we’re promising in the areas in which you would – The cost of energy increasing significantly. More than like to see improvements, or if we can deliver the plan 20 per cent of our running costs goes on paying for for less. gas and electricity. If we don’t deliver on our promises, then the financial – Extreme weather, such as droughts and heavy penalties we face will mean our shareholders will rainfall, having a major effect on our costs. earn lower returns. We think it’s only right that we – Our large construction projects, such as treatment face consequences if we don’t do what we say, so the works, not being completed on time and on budget. penalties we will face are higher than the potential financial benefits. – The rate of inflation, which can affect our income and the interest we pay on money we borrow, increasing more than expected. Our analysis shows that, in all but the most extreme cases, these risks can be managed by our shareholders, without the need to increase bills beyond the rate of inflation. Only in exceptional circumstances would we need to consider an increase in bills, and we could do this only with the approval of Ofwat.
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They also carry the risks associated with external Penalties and rewards factors, such as changes in the rate of inflation or interest. You have told us you are willing to pay more to Like investors in any business, they expect a fair return reduce sewer flooding inside properties. Our plan is to reduce these incidents by 25 per cent by 2020. on their investment, which reflects the risks of that business. Compared with many businesses, water If we miss our target, we would face a financial companies are a relatively low-risk investment. That is penalty. On the other hand, if we deliver a bigger reduction, we are proposing we should earn a reflected in the returns their shareholders expect. financial reward. We have made allowances for a fair rate of return in the Flooding can be affected by things outside our overall cost of this plan. control, such as extreme weather. So we propose the penalties and rewards would only apply if we missed the target – or beat it – by more than the normal weather related variations in the measure. This Sharing our success means we would not earn a reward just because the We think this plan achieves a fair balance between weather had been kind to us. the risks our shareholders are taking and the potential rewards they could receive if we beat our targets. However, sometimes things that are nothing to do with Our profits the quality of service we provide can go in our favour. All businesses need to make enough profit to meet the For example, if interest rates turn out to be significantly interest charged on the money they borrow, as well as lower than we expect, we may be able to borrow providing a fair return to their shareholders. money to fund our plan at a lower cost. Companies like us, with large investment programmes, In other areas because we’re trying to do things in new need to make enough profit to finance our investment. ways and use new technology, we may find we can deliver our plan for significantly less than we thought. During the last 20 years we have invested about £10 billion in our water and wastewater systems, If that happens we think it’s only fair that you should providing more reliable services and reducing our effect share in that success. on the natural environment. To pay for this, we have We will continue to work on the detail of this and re-invested profits and borrowed large amounts of discuss it with you before submitting our final plan in money. We will have to borrow more money between early December 2013. 2015 and 2020 to pay for the improvements set out in this plan. This plan aims to make sure we can make enough profit to maintain a strong credit rating – which demonstrates to lenders that we can pay the interest on our borrowings, with a reasonable safety margin. Our shareholders have invested more than £1 billion in our business and it is they who carry the risk of us needing to spend more than we have forecast. They will also meet the costs of any financial penalties we need to pay for not meeting our targets.
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Join in and have your say…
Thank you for taking the time to read our draft five-year Business Plan for 2015 to 2020. We would welcome your views on the proposals it sets out.
Your feedback will help us make sure the services we provide in the future meet your needs and expectations. By telling us what you think, you could also win up to £250 of shopping vouchers. We will enter the names of everyone who comments How you can give into a prize draw to win the vouchers. Terms and your feedback conditions apply. See www.southernwater.co.uk/haveyoursay for details. Our website Visit www.southernwater.co.uk/haveyoursay and fill in our online survey or feedback form. Email Send your views to We will also donate £1 to the international charity [email protected] WaterAid for every piece of feedback we receive.
We’d like to hear your comments by Twitter Sunday 22 September, 2013. Tweet us via @SouthernWater Post You can get a copy of our plan and feedback form from, or send us your feedback to: Joel Hufford, Public Relations Manager, Southern House, Yeoman Road, Worthing, BN13 3NX Come and see us We are holding roadshows at venues across our region. You can get more details from our website, or by writing to Joel Hufford, Public Relations Manager, at the address above. Phone You can call us on 01903 272349. Lines are open from 9am to 5pm, Monday to Friday. www.southernwater.co.uk/haveyoursay